NH Net Income Grew 8.1% First Half of the Year

Net profit of NH Hoteles increased 8.1% in the first half of the year, accounting for 43.9 million euros, compared to the sun of 40.6 million euros which was registered in the same period in year 2001.

EBITDA reached 105.6 million euros, 6.4% less than that registered last year for the same period.

The figures show an improvement in the activity of the company as compared to the last quarter of year 2001. The improvement shall be seen under the light of the results obtained last year for the same period, which was an extremely positive one.

The growth engine of the Group was the hotel activity: 17.9% increase in income, reaching 410 million euros. The net profit for this segment grew 12.3%, amounting to 42 million euros.

EBITDA in this sector amounted to 101.3 million euros, with a minimum 4% reduction as related to the same period of last year.

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The incorporation of Astron and Krystal hotels, which were out of the equation during the first half of 2001, generated 11 million euros in EBITDA.

Hotels in Spain and Portugal had a positive trend, despite of the global economic situation with 2.2% increase in sales, reaching 188 million euros, thanks in part, to the incorporation of the new hotels. Hotels located in the rest of Europe, offer more moderate results: there are mild reductions in turnover in Holland, Germany and Switzerland, whereas such reductions are slightly higher in Latin America due to the economic crisis in Argentina and the currency exchange rates. On the other hand, Belgium grew 13.6%, thus reaching 18.6 million euros.

The impact of the company`s internationalization is more and more evident. It is worth mentioning that during the first half of the year, 54% of turnover came from outside Spain. Last year, during the same period, 53% of the income registered came from Spain and the remaining 47% came from other countries.

As far as expenses are concerned, the containment achieved in similar hotels is worth mentioning, since there was a mere 2% increase. 17% reduction in expenses in the Mercosur is also worth mentioning.

The reduction experienced in the real estate sector in Sotogrande as related to the first half of last year (that is, a reduction of 1.3 million euros), is basically the result of an increase in sales, not yet registered, that accounts for more than 80% of the sales of that period, which amounts to 61.4 million euros, compared to the 55.3 millions registered in June 30, 2001. The main reason for such difference is the hectic activity of the Group in the last two years, thus bringing to the market new areas within the resort requiring investments in infrastructure.

The company has recently launched La Reserva: this is a new resort that offers lots, golf courses and apartments. La Reserva is already exceeding sale expectations. Therefore, activity in Sotogrande is expected to improve considerably by the end of the year. NH Hoteles is the owner of more than 94% of the resort.

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